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Frequently Asked Questions

[ General ] Rates ] Retirement ]

Q: What can I deduct on my tax return?
A: As with most things related to taxes, the government and life in general:  It depends.  The IRS/Internal Revenue Code uses an "ordinary & necessary" standard.  As yourself the question:  Is this purchase common for people in my industry?  Do I need this purchase in my business?  For example, if you are a doctor, it is ordinary and necessary for doctors to purchase a uniform or "scrubs".  If you are are an engineer, it is not ordinary nor necessary for you to purchase "scrubs" however you might need a construction hat or safety vest both of which would not be ordinary or necessary for the doctor.  For a list of common expenses, feel free to consult the list I use for many of my clients here.


Q: What are the standard mileage rates for 2012, 2013 and 2014?
A: In cents per mile, 2012 2013 2014
Business:  55.5 56.5 56.0
Medical: 23.0 24.0 23.5
Charitable: 14.0 14.0 14.0








Q: What are there limited on Social Security (FICA) or Medicare?


Year Annual Social Security Wage Base Limit Social Security Tax Rate Maximum Annual Social Security Tax Withholding Annual Medicare Wage Base Medicare Tax Rate Additional Medicare Wage Base Additional Medicare Tax Rate
2014 $117,000 6.2% $7,454.00 No annual limit 1.45% $200,000 0.09%
2013 $113,700 6.2% $7,049.40 No annual limit 1.45%    
2012 $110,100 4.2% $4,624.20 No annual limit 1.45%    
2011 $106,800 4.2% $4,485.60 No annual limit 1.45%    
2010 $106,800 6.2% $6,621.60 No annual limit 1.45%    
2009 $106,800 6.2% $6,621.60 No annual limit 1.45%    


Amy R. Cook, CPA
7908 Cameron Rd; Austin, TX  78754
512.222.1267 (office) / 512.789.2592 (mobile)

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